Anbaric, a clean energy company based in Wakefield, Mass., and the C$168.2 billion ($124.4 billion) Ontario Teachers’ Pension Plan have formed a partnership to create a new development company, Anbaric Development Partners.
The partnership will develop clean energy infrastructure projects in North America, accelerating the revitalization of aging transmission networks. The existing Anbaric management team will lead the new company.
Through Anbaric, OTPP is committed to funding development costs, which are projected to produce $2 billion in fully constructed assets.
“Ontario Teachers’ investment in Anbaric creates an attractive launching pad for generating innovative energy jobs and boosting local economies, while replacing our deteriorating and outdated fossil fuel–oriented grid with new and sustainable energy alternatives,” says Edward Krapels, founder and CEO of Anbaric.
The investment includes sophisticated high-voltage direct current transmission technology and microgrid projects that will bring renewables online with greater efficiency, according to Krapels.
Anbaric has developed and completed several projects in the Northeast, teaming up with a range of investment partners, and the investment in Anbaric Development Partners marks the largest financial commitment by an investor in the company’s 15-year history.
Anbaric has been behind a number of independent electric transmission projects. These projects include Neptune Regional Transmission System, which delivers 660 megawatts to Long Island, N.Y., from New Jersey; the Vermont Green Line, a wind-plus-hydro project launched by Anbaric but now being completed by National Grid and Poseidon; and a transmission solution to bring wind- and hydro-generated renewable energy into New York state. Anbaric also is planning to develop a series of large microgrids, also known as distributed energy systems, or non-transmission alternatives.
Ontario Teachers seeks exposure in commodities by investing in private real assets, such as investments in agriculture, oil and gas, timberland, and minerals. The pension fund’s natural resources portfolio includes investments in Canada, the United States, Australia and New Zealand.
One of the investments in Ontario Teachers’ energy portfolio is Heritage Royalty, a Calgary-based oil and gas royalty company with 4.8 million acres of mineral fee title lands and other royalty interests on approximately 500,000 acres.
As of Dec. 31, 2016, OTPP had a target allocation to natural resources of 6 percent, with an actual allocation of 1.3 percent.